See post-money valuation, investor ownership and founder dilution for a funding round.
Please do not make financial decisions based on these results.
What is the Pre and Post Money Valuation Calculator?
See post-money valuation, investor ownership and founder dilution for a funding round. To use the Pre and Post Money Valuation Calculator, enter pre-money valuation, new investment, founder ownership before round; it returns post-money valuation, investor ownership, founder ownership after round, dilution, and shows them instantly as you type.
How to use business planning calculators
Start with the numbers you already have: price, unit cost, fixed costs and cash on hand. The Break-even Calculator turns them into the sales volume you need, and the Burn Rate Calculator shows how many months your cash will last. Run both before you commit to hiring, a lease or a loan.
Next test the upside. The business valuation calculator compares earnings, revenue and cash-flow methods, while the pre- and post-money calculator shows what a funding round does to ownership.
- Costs. Use the contribution margin, cost function and labor cost calculators to separate fixed from variable costs and to find the true cost of each employee.
- Inventory. FIFO, LIFO, safety stock and GMROI show how much stock to hold and whether it earns its keep.
- Projects. Earned value (EVM), expected monetary value and the profitability index rank projects by cost, schedule and risk.
How to use the Pre and Post Money Valuation Calculator
- Enter your numbers. The inputs are Pre-money valuation ($), New investment ($), Founder ownership before round (%). Use figures from the same period (same month, quarter or year) for every field. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Post-money valuation, and the cards below show Investor ownership, Founder ownership after round, Dilution. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Pre and Post Money Valuation Calculator using the default values shown in the calculator above:
Inputs
| Pre-money valuation ($) | 4,000,000 |
|---|---|
| New investment ($) | 1,000,000 |
| Founder ownership before round (%) | 100 |
Results
| Post-money valuation | $5,000,000.00 |
|---|---|
| Investor ownership | 20% |
| Founder ownership after round | 80% |
| Dilution | 20% |
With these inputs the calculator returns Post-money valuation: $5,000,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Pre-money valuation ($) from 4,000,000 to 4,800,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Post-money valuation | $5,000,000.00 | $5,800,000.00 | +16% |
| Investor ownership | 20% | 17.24% | -13.8% |
| Founder ownership after round | 80% | 82.76% | +3.4% |
| Dilution | 20% | 17.24% | -13.8% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Pre and Post Money Valuation Calculator reports Post-money valuation, investor ownership, founder ownership after round and dilution. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is the difference between pre- and post-money?
Pre-money is the value before new cash arrives; post-money includes the cash invested in the round.
What is the most important number for a new business?
Cash runway. A profitable plan still fails if cash runs out first, so check burn rate and break-even together.
Can these calculators replace an accountant?
No. They give fast estimates from your inputs. Use an accountant for tax, audited accounts and valuation reports.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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